Flipkart acquires UPI-based mobile payments startup PhonePe

The Bangalore-based mobile payments company, PhonePe, which was co-founded by two ex-employees from Flipkart – Mr. Rahul Chari and Mr. Sameer Nigam, has been acquired by Flipkart. The mobile payment solutions company is currently designing the first ever Unified Payment Interface system in India.

Flipkart’s CEO, Binny Bansal commented on the acquisition saying it will help Flipkart’s business grow as the number one obstacle in adopting online shopping has been payments. With the introduction of UPI systems, digital payments will be simplified and adopted more widely than they are now.

PhonePe’s Unified Payments Interface will enable simplification of both online and offline payments by linking bank accounts to mobile numbers or a virtual payment address. Payments through these methods will be authenticated with a unique identifying number allowing anyone with a bank account to register for the payment facility.

Digital payments will be faster without the need to key in your payment details repeatedly and will continue with the same level of high security as it does now.

Mr. Nigam from PhonePe said that they were excited about the merger with Flipkart as it provides them with one of the country’s largest customer base allowing them to transform digital payments among millions.

Flipkart started its operations in the country in 2007 and currently serves a customer base of 75 million. The merger will allow PhonePe’s UPI systems to be offered to 60% of India’s online shopping market share which Flipkart currently owns.

The current employees at PhonePe will be retained by Flipkart although the business will operate with its own independent identity.